In what can be a much-needed relief to the pharma majors Cipla and Sun Pharma in their fight against the NPPA's mandate to replace the stocks in the market with those carrying reduced MRP within 45 days of the new price notification, the Delhi Hgh Court has asked the government not to take any punitive action against these companies on this issue till the next hearing which has been fixed for August 27.

Delivering its order on this crucial issue, the court has asked the companies to submit the new price list of 151 formulations, fixed as per the formula under the DPCO-2013, to the national drug price regulator NPPA, drugs controller general of India (DCGI) and the dealers. But these companies do not have to withdraw the stocks already in the market.

“Today's Delhi high court order will be applicable to only these two companies as the court did not quash the provisions in the new DPCO which mandated the pharma companies to replace the stocks in the market with those carrying reduced MRP within 45 days of the new price notification by the NPPA. For other companies, they have to move the court separately,” said Manoj Tongra, legal expert and a drugs control officer in Rajasthan.

Earlier last month, in the first batch of revision of prices, according to the National Pharmaceutical Pricing Policy (NPPP) 2012, the NPPA had fixed the prices of 151 formulations that come under the essential drugs to begin the process of new price fixation. The new prices, fixed as per the formula under the DPCO-2013, would come into effect within 45 days of the NPPA notification which was dated June 14.

Annoyed over the 45-day window period, Cipla and Sun had moved Delhi high court and another pharma major Alembic moved Gujarat high court.

In their petition to the Delhi high court, the pharma companies had sought quashing of certain provisions of the DPCO. It was argued that the companies should be allowed to sell on old rates the existing stocks that have been manufactured and already been supplied in the market and the new rates can be made applicable on new lots to be supplied by firms.

Meanwhile, sources said that buoyed over the success of the two pharma majors, some other companies are also preparing to move court on this issue.